During the DealBook event hosted by the New York Times on November 30, BlackRock CEO Larry Fink disclosed the company’s $24 million investment in the now-bankrupt crypto exchange FTX, according to Reuters. Several other global asset managers such as Singapore's sovereign wealth fund Temasek, Sino Global Capital, Sequoia Capital, Tiger Global, and Multicoin Capital have also revealed their exposure to FTX.
According to Fink, there were “misbehaviors of major consequences” in FTX, but the technology behind crypto will remain relevant for the future despite all the problems around SBF’s crypto exchange.
"We're going to have to wait to see how this all plays out (with FTX)," Fink said. "I mean, right now we can make all the judgment calls and it looks like there were misbehaviors of major consequences," Fink said during the DealBook summit, Reuters reported.
"I believe the next generation for markets and next generation for securities will be tokenization of securities," he added.
For context, BlackRock is the world's largest asset manager with a staggering $10 trillion in assets under management as of January 2022. FTX, a cryptocurrency exchange valued at $32 billion in January 2022, filed for Chapter 11 bankruptcy protection on November 11 and now owes more than $3 billion to its 50 largest creditors.